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Wage Structure and Gender Earnings Differentials in China and India

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  • Dainn Wie

    (National Graduate Institute for Policy Studies)

  • Jong-Wha Lee

    (Korea University)

Abstract

This study analyzes how changes in overall wage inequality and gender-specific factors affected the gender wage gap in Chinese and Indian urban labor markets in the 1990s and 2000s. Analysis of micro data present that contrasting evolutionary patterns in gender wage gap emerged over the period, showing a widened wage gap in China but a dramatically reduced gap in India. In both countries, female workers f increased skill levels contributed to reducing the gender wage gap. However, increases in observed prices of education and experience worked unfavorably for high-skilled women, counterbalancing their improvement in labor market qualifications. Decomposition analyses show that China fs widened gap was attributable to gender-specific factors such as deteriorated observable and unobservable labor market qualifications and increased discrimination, especially against low- and middle-skilled female workers. For India, gender-specific factors and relatively high wage gains of low- and middle-skilled workers reduced the male-female wage gap.

Suggested Citation

  • Dainn Wie & Jong-Wha Lee, 2016. "Wage Structure and Gender Earnings Differentials in China and India," GRIPS Discussion Papers 16-25, National Graduate Institute for Policy Studies.
  • Handle: RePEc:ngi:dpaper:16-25
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    Cited by:

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    5. Soumyajit Chakraborty & Alok K. Bohara, 2021. "The Cost of Being ‘Backward’ in India: Socio-religious Discrimination in the Labour Market," Indian Journal of Human Development, , vol. 15(2), pages 252-274, August.
    6. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    7. Conover Emily & Khamis Melanie & Pearlman Sarah, 2021. "Gender Imbalances and Labor Market Outcomes: Evidence from Large-Scale Mexican Migration," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-22, January.
    8. Mamiko Takeuchi, 2021. "Determinants of Earnings and Gender Earnings Gaps among Highly Educated Workers within Major Cities in Asian Countries," Asian Economic Journal, East Asian Economic Association, vol. 35(2), pages 166-186, June.
    9. Ye Ye & Rosmini Omar & Binyao Ning & Hiram Ting, 2020. "Intergenerational Transmission of Occupation: A Qualitative Inquiry into Frontline Factory Workers in China," Sustainability, MDPI, vol. 12(20), pages 1-17, October.
    10. Björn Gustafsson & Haiyuan Wan, 2018. "Wage growth and inequality in urban China: 1988-2013," WIDER Working Paper Series wp-2018-163, World Institute for Development Economic Research (UNU-WIDER).
    11. Shirgaokar, Manish, 2019. "Operationalizing gendered transportation preferences: A psychological framework incorporating time constraints and risk aversion," Transport Policy, Elsevier, vol. 75(C), pages 10-18.
    12. Henrik Hansen & John Rand & Ngu Wah Win, 2020. "The gender wage gap in Myanmar: Adding insult to injury?," DERG working paper series 20-05, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    13. Livini Donath & Oliver Morrissey & Trudy Owens, 2021. "Pay period and the distributional effect of education on earnings: Evidence from recentered influence function," Discussion Papers 2021-02, University of Nottingham, CREDIT.
    14. Seneviratne, Prathi, 2020. "Gender wage inequality during Sri Lanka’s post-reform growth: A distributional analysis," World Development, Elsevier, vol. 129(C).
    15. Björn Gustafsson & Haiyuan Wan, 2018. "Wage growth and inequality in urban China: 1988–2013," WIDER Working Paper Series 163, World Institute for Development Economic Research (UNU-WIDER).
    16. Zhang, Jian & Jin, Songqing & Li, Tao & Wang, Haigang, 2021. "Gender discrimination in China: Experimental evidence from the job market for college graduates," Journal of Comparative Economics, Elsevier, vol. 49(3), pages 819-835.
    17. Liu, Ling & Wan, Qian, 2017. "The Effect of Education Expansion on Intergenerational Mobility of Education: Evidence from China," MPRA Paper 80616, University Library of Munich, Germany.
    18. Henrik Hansen & S Kanayade & John Rand & Neda Trifkovic, 2021. "Workplace training in Myanmar: Determinants and wage returns," DERG working paper series 21-10, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    19. Marina Fados & Maria Bohdalova, 2017. "Gender Inequality in Unemployment by Age in Spain, Switzerland and the European Union," MIC 2017: Managing the Global Economy; Proceedings of the Joint International Conference, Monastier di Treviso, Italy, 24–27 May 2017,, University of Primorska Press.
    20. Mamiko Takeuchi, 2019. "Earnings gaps among higher-educated workers withinmain cities insemi-industrializedandnewly industrialized Asian countries," Discussion Papers in Economics and Business 19-06-Rev., Osaka University, Graduate School of Economics, revised Jul 2019.
    21. Kang, Yankun & Liang, Shuyuan & Bai, Caiquan & Feng, Chen, 2020. "Labor contracts and parents’ educational expectations for children: Income effect or expected effect?," Children and Youth Services Review, Elsevier, vol. 118(C).

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